Saint Mary's Medical Center Sold
Here is the full text of a news release just sent out by St. Mary's:
Reno, Nev. – March 30, 2012 – Dignity Health today signed an asset purchase agreement with Prime Healthcare Services for the sale of Saint Mary's Regional Medical Center. The sale ensures that the hospital will remain open, offering all current acute and emergency care services to the Reno community. Saint Mary's sponsoring congregation, the Dominican Sisters of San Rafael, has approved the transaction, which is expected to be finalized by June 30.
As a condition of the sale, Prime Healthcare Services has committed to the following:
- Maintain current service line operations, including the emergency department.
- Offer employment to substantially all of the hospital's 1,600 employees.
- Invest $20 million in capital in the hospital over the next three years.
- Continue the hospital's commitment to the community by maintaining the current charity care policy.
- Assume health plan contracts, including with Saint Mary's Health Plans.
"We are pleased that Saint Mary's will continue offering its high level of care and provide competition for health care services in the Reno area," said Michael Blaszyk, senior executive vice president and chief financial officer for Dignity Health. "We appreciate the community's support for keeping the hospital open and preserving much-needed jobs for the local economy."
Since 2008, Dignity Health has invested $67 million in Saint Mary's, which has significantly strengthened the facility's ability to sustain its mission. However, the hospital continues to experience significant challenges brought on by an ailing local economy and insufficient reimbursements. In 2011, the hospital posted a net loss of $43.5 million.
In recognition of the fact that the hospital requires new capital to strengthen and grow its services, a search for a new partner has been underway for nearly 24 months. The primary objective of this search has always been to ensure the viability and future of the hospital. The alternative to this sale – closure – was deemed unacceptable by both Dignity Health's Board of Directors and the Dominican Sisters of San Rafael.
"The Dominican Sisters of San Rafael have served in Reno for more than 100 years, and we are committed to the health and well-being of all who live and work here," said Sr. Maureen McInerney, Prioress General of the Dominican Sisters of San Rafael. "We love this community and we made this decision in support of the common good in Reno to preserve access to care and jobs." Prior to her current role with the Dominican Sisters of San Rafael, Sr. Maureen served for seven years at Saint Mary's Regional Medical Center as the vice president of sponsorship and mission.
Saint Mary's Medical Group will also transition to Prime Healthcare. Saint Mary's Health Plans will remain within the Dignity Health network. Prime Healthcare and Saint Mary's Health Plans have reached an agreement on a contract for services. Dignity Health is also aware how important Saint Mary's Mission Outreach programs are to the community, and is working to ensure their continued service.
Saint Mary's Regional Medical Center will continue all normal operations during this transition. There will be no impact on patient care, employment, contracts, billing, or any other facet of Saint Mary's daily operations during this transition.
About Dignity Health (formerly Catholic Healthcare West)
Dignity Health, headquartered in San Francisco, Calif., provides integrated, patient and family centered care. It is the fifth largest health system in the country with 10,000 physicians and 55,000 employees across Arizona, California, and Nevada. Through its network of more than 150 ancillary care sites and 40 acute care hospitals, Dignity Health is committed to delivering compassionate, high-quality, affordable health care services with special attention to the poor and underserved. In 2011, Dignity Health provided $1.4 billion in charity care, community benefit and unreimbursed patient care. For more information, please visit our website at www.dignityhealth.org.
About Prime Healthcare Services
Prime Healthcare Services, headquartered in Ontario, CA, currently owns and operates 16 acute care hospitals in California, Texas and Pennsylvania. Prime Healthcare was recognized as a "Top 15 Health System in the Nation" in 2012 and a "Top 10 Health System in the Nation" in 2009 by Thomson Reuters. Of the twelve hospitals that are accredited by Joint Commission, the leading accreditation organization in the country, nine earned national recognition as "Top Performer," (Top 14%), on Key Quality Measures in 2011. Three of the hospitals were ranked as "Top 100 Hospitals" multiple times for quality patient care.